Wienerberger announces agreement to acquire facade specialist
Arriscraft
- Key strategic expansion to Canada as well as development and
strengthening of US market position
- Acquisition of operating companies for CAD 107 million planned -
dependent on unit holder approval
- Ideal addition through attractive niche product line manufactured
stone
- Synergies through enlargement of product portfolio and utilization
of US direct sales network
Vienna, May 29, 2007 - Wienerberger AG has signed an agreement with
Arriscraft International Income Fund, a leading Canadian producer of
manufactured stone, to acquire the Fund's operating units through its
wholly owned subsidiary General Shale. The purchase price amounts to
CAD 107 million (¤ 71 mill.). The transaction is subject to the
approval of the Fund's unit holders at a special meeting, the receipt
of regulatory approvals and specific third party consents. Certain
significant unit holders have provided their written agreement to
General Shale to vote their voting units of the Fund in favor of the
transaction. The units subject to the voting agreement represent an
aggregate of approximately 27.8% of the Fund's issued and outstanding
voting units of the Fund. The unit holders who have agreed to vote
their units of the Fund in favor of the transaction are a corporation
owned by the former owner of the Arriscraft business and the current
and former management group.
Possibility for growth through entry into Canadian market
"The acquisition of the manufactured stone specialist Arriscraft will
strengthen our position in the USA and also mark our entry into the
Canadian market, which represents an important expansion step for our
Group. It will also enlarge our local product portfolio to include a
state-of-the-art and attractive niche product. We are convinced that
the acquisition of Arriscraft will create a significant potential for
cost and revenue synergies, above all through the utilization of our
direct sales network in the USA, which we have strengthened in recent
years and extended with the acquisition of Robinson Brick", explained
Dick Green, CEO of General Shale.
Arriscraft is the market leader with manufactured stone in Canada and
USA
Arriscraft International was founded in 1949 and is headquartered in
Cambridge, Ontario, roughly 100 km west of Toronto. In addition to
Cambridge, the company also operates plants in St. Étienne des Grès
in Quebec, Canada, and Fort Valley, Georgia, USA. This façade
specialist also has a dolomitic limestone quarry with an annual
capacity of more than 30,000 tons in the southwest of Ontario. The
product portfolio covers manufactured stone, natural limestone and
stone accessories. Manufactured stone is produced by mixing fine sand
with quick lime under high pressure, and is harder than natural
stone. The finished product has an unusual density and durability, is
completely shrink-resistant and expansion free, and also has all the
aging and light reflective properties of natural stone. Its many
advantageous features make manufactured stone a high-quality building
material with a substantial potential for the future. The range of
accessories covers products made of manufactured and natural stone
that can be used for all types of buildings. Arriscraft International
generated revenues of CAD 79.2 million (¤ 52.7 mill.) and EBITDA of
CAD 11.3 million (¤ 7.5 mill.) in 2006 with over 400 employees.
Arriscraft as well as the recently acquired Robinson Brick Company
will both report through General Shale which will hold responsibility
for the Wienerberger growth strategy in North-America.
Growth segment commercial buildings
"The products made by Arriscraft are not only used in residential
construction, but also to a large extent in commercial buildings. In
contrast to the current downturn in the residential construction, we
expect increasing building activity in the commercial sectors of the
USA and Canada. The acquisition of this manufactured stone specialist
will enable us to develop an additional customer group and also
strengthen our regional positions", explained Dick Green. In 2006
Arriscraft recorded the largest share of revenues, or roughly 40%, on
sales of manufactured stone for commercial buildings. Arriscraft is
the largest North-American supplier in this segment, and generated
46% of revenues in the USA and 54% in Canada in 2006.
Potential for synergy, optimization and further investments
Wienerberger entered the US brick market in 1999 with the acquisition
of the second largest producer, General Shale. Further takeovers
followed with Darlington and Cherokee Sanford in 2000 and Robinson
Brick in 2006. "The USA is our largest single market, with 16% of
Wienerberger Group revenues. In spite of the current weakness, we
expect further growth over the mid- to long-term because of the
favourable demographic trends. For this reason, the acquisition of
Arriscraft represents an important step in our profitable expansion
strategy. We also see substantial opportunities for future
optimization and investments with this acquisition as part of our
bolt-on program, which will allow us to steadily expand our market
positions over the long-term", commented Wolfgang Reithofer, CEO of
Wienerberger AG, on the strategic importance of this transaction.
Wienerberger will finance this intended acquisition from free cash
flow and from existing credit lines.
For additional information contact:
Thomas Melzer, Public and Investor Relations
T +43(1)60192-463 | communication@wienerberger.com
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